Exam 12: GDP: Measuring Total Production and Income

A country in which a significant fraction of domestic production takes place in foreign-owned factories and facilities is most likely a country where

When consumers are less confident about their jobs or incomes,they are more likely to

Which of the following could cause nominal GDP to increase,but real GDP to decrease?

Gross national product,GNP,of the United States is the market value of all final goods and services

The Philippines and Vietnam have roughly the same size population.Suppose the GDP of the Philippines is $1,000 billion and the GDP of Vietnam is $10,000 billion.You should conclude

Disposable personal income equals personal income

In the circular flow model,the value of total income for an economy ________ the value of total production.

Investment,as defined by economists,would include the purchase of a

The output of Mexican citizens who work in Texas would be included in the

The GDP deflator is a measure of the

Table 12-6 -Refer to Table 12-6.Suppose that a simple economy produces only four goods and services: iPods,t-shirts,bottled water,and oranges.Calculate nominal GDP for this simple economy.

What is the largest component of spending in the United States?

Even though it is generally true that the more goods and services people have,the better off they are,GDP provides only a rough measure of well-being.Assuming language is not an issue,what other factors besides GDP might you consider when deciding where to live and work?

Is nominal GDP measured in terms of quantity or in terms of dollars? If dollars,the value of the dollar from what period? Is real GDP measured in terms of quantity or in terms of dollars? If dollars,the value of the dollar from what period?

Table 12-7 -Refer to Table 12-7.Suppose that a simple economy produces only four goods and services: sweaters,CDs,sugar,and soft drinks.Assume one half of the sugar is used in making the soft drinks and the other half of the sugar is purchased by households.Calculate nominal GDP for this simple economy.

Suppose,in 2012,you purchased a house built in 2003.Which of the following would be included in the gross domestic product for 2012?

Which of the following is not a true statement about the impact of World War II on the U.S.economy?

Which of the following is not a durable good?

The factors of production include

Transfer payments are subtracted from national income to get to personal income.